LitioMX to Receive Funding to Boost Battery Production

LitioMX will receive financial support from the Development Bank of Latin America and the Caribbean (CAF) to invest in technological research for the production of lithium batteries. It is expected that with this new financial support, Mexico will be able to take better advantage of its nearshoring opportunities and become a key global battery producer.

René Orellana, Regional Manager, CAF, points out that even though financial support will be granted to LitioMX in 2024, the amount is still under discussion. The company will decide in which areas these funds will be invested. However, the condition is that they are allocated to battery science research.

Orellana stressed that the support is non-refundable, so LitioMX does not have to return the amount received. "We will support the development of technology linked to lithium batteries. With this, we intend to contribute to research and technological development. We want LitioMX to promote or deepen this scientific dialogue with groups of researchers from academia and their own teams to develop batteries," said Orellana.

Given that the government's focus has been on lithium extraction in the north of the country, experts say the new financial support will allow the country to further open its opportunities with batteries, a key part of the lithium supply chain. "The perspective is to continue supporting this line of technology that is oriented toward the energy transition," said Orellana. 

CAF emphasized that it decided to invest in Mexico because of its nearshoring potential, which positions it as a key player at the international level. In addition, a dialogue on lithium has been opened in Mexico with academics and scientists as the government will need expertise and technology to start producing lithium. "We observe that there are already very important communication processes with prototype laboratories that develop processes for battery production. There are already some laboratories that are manufacturing cells in real conditions, experimenting with new materials, manufacturing processes and training human talent."

Although LitioMx's progress in production efforts has not been widely publicized, first lithium production could be reached in 2028, said Pablo Taddei, CEO, LitioMX. Mexico was expected to become a lithium producer by 2024. However, the government canceled Ganfeng Lithium’s concessions in Sonora, while the company still seeks alternatives to continue with its project, such as entering a public-private partnership with the government. Ganfeng explained that, if an agreement is reached with the court, the project could be developed in 18 months. However, if done with the government, given its financial and technological constraints, it could take 20 years to reach production.